Which compensation program is offered to encourage recipients to create long-term shareholder value?

Long-term Incentives: Stock options are designed to align the interests of employees with those of shareholders by providing a financial incentive for employees to increase the company's stock value over time.

Retention and Motivation: Offering stock options can help retain key talent by giving employees a sense of ownership in the company and motivating them to contribute to its long-term success.

Strategic Alignment: Stock options encourage employees to focus on long-term goals and performance, which can lead to sustainable growth and increased shareholder value.

References:

SHRM, "Designing and Managing Incentive Compensation Programs," available at SHRM.org.

SHRM, "Understanding Stock Options and Other Equity Compensation," available at SHRM.org.